Lawn to Beach in Hawaii

Jan. 6, 2014 11:26 a.m. ET

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Steve Connell, a 54-year-old money manager, was working in Tokyo when he first discovered the appeal of this part of Kailua, Hawaii, about 12 miles from Honolulu. 'The weather, in my view, is the best in Hawaii,' he said, and this 1½-acre property leads directly onto a white sand beach. He purchased it through a limited-liability company for $9 million in 2005, according to public records.
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Mr. Connell bought the land as an investment property. He co-owns it with his business partner, Craig Mitchell. Mr. Connell tore down three smaller homes and a beach house to create this roughly 18,000-square-foot compound in 2009, which includes the main house and a detached guest home. He says the design is inspired by traditional Hawaiian architecture, with an emphasis on seamless, open spaces. 'The difference between inside and outside evaporates,' he said. The central courtyard, pictured here, includes a pond-inspired pool and hot tub area.
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The property includes 100 linear feet of waterfront beach access, according to the listing.
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Mr. Connell said he wanted to build a home in Kailua that offered buyers 'the same elegance, same scale, that they could get on the Big Island,' but without the overcrowding and other drawbacks of a more popular market. One of the biggest perks of the property, he said, is its 'street to ocean' appeal: the front yard leads directly onto a white sand beach.
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The L-shaped home surrounds the pool, which is both functional and decorative. 'The first thing any juvenile does is go up on that rock and jump into the pool,' he said. The pool is deep enough for diving, he notes.
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The hot tub, pictured, overflows into the pool. A nearby waterfall feature is a great source of ambient noise, Mr. Connell says, for added privacy.
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The entire home is designed around the idea of outdoor living, Mr. Connell said, with large glass pocket doors throughout the space that can be fully retracted. The lower level features travertine stone flooring while the upstairs area features hardwood. He declined to give the construction cost, but said it could cost roughly $13 million to build this compound in the current market.
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The main home, not including covered outdoor spaces, storage or the poolside cabana, measures about 8,400 square feet.
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Despite the home's many features, Mr. Connell says he and his guests spend most of their time outdoors, or in the cabana. 'It's the perfect temperature for your body,' he said about the climate. 'You could run around there naked, man.'
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Mr. Connell says the home also has significant rental value, averaging $100,000 a month, and up to $200,000 in the peak season. He has rented the home to several celebrities and business moguls. The three-bedroom guesthouse is pictured.
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The main home includes fives bedrooms, five full bathrooms and two partial baths, according to the listing. The master bathroom is shown.
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Mr. Connell is the founder and CEO of Hawaii-based Interlaced Investment Advisors, an investment advisory firm. He currently lives in Hawaii and uses this property as a second home. His business partner and property co-owner resides in Singapore and is using the property less often, which is part of the reason why they've recently listed the home. Their plan was always to sell the property.
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The property also features a theater-style entertainment room near the pool and cabana, shown here.
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The property was listed in November for $24.95 million with Tracy Allen of Coldwell Banker Pacific Properties. A portion of the property including the main home is available for sale separately for $18.5 million.
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